The plan need not pay unsecured claims in full as long it provides that the debtor will pay all projected "disposable income" over an "applicable commitment period," and as long as unsecured creditors receive at least as much under the plan as they would receive if the debtor's assets were liquidated under chapter 7. In chapter 13, "disposable income" is income (other than child support payments received by the debtor) less amounts reasonably necessary for the maintenance or support of the debtor or dependents and less charitable contributions up to 15% of the debtor's gross income.

If the debtor operates a business, the definition of disposable income excludes those amounts which are necessary for ordinary operating expenses. The "applicable commitment period" depends on the debtor's current monthly income.

The applicable commitment period must be three years if current monthly income is less than the state median for a family of the same size—and five years if the current monthly income is greater than a family of the same size. The plan may be less than the applicable commitment period (three or five years) only if unsecured debt is paid in full over a shorter period.

In Maryland, as in all states, Chapter 13 bankruptcy allows debtors to reorganize their debts and pay them off over a set period. Under Chapter 13, a debtor's plan does not need to pay unsecured claims in full as long as the plan commits all of the debtor's projected disposable income over the applicable commitment period, which is either three or five years depending on the debtor's income. Disposable income is calculated as income minus necessary expenses for maintenance or support of the debtor and dependents, and allowable charitable contributions. If the debtor owns a business, the disposable income calculation excludes necessary business operating expenses. The applicable commitment period is three years for those earning less than the state median income for a family of the same size, and five years for those earning more. A plan can be shorter than the applicable commitment period if it pays off all unsecured debt within that shorter time frame.